Author: admin_gst

Won't blink on GST launch,no excuse for biz not being ready:FM

Won't blink on GST launch,no excuse for biz not being ready:FM
GST
Dated:- 20-6-2017

New Delhi, Jun 20 (PTI) The government will not blink on rolling out the GST from July 1, Finance Minister Arun Jaitley said today, emphasising that businesses cannot give any excuse for not being ready as enough time was given to them for preparation.
However, implementation of the Goods and Services Tax (GST), which will unify more than a dozen separate levies to create a single market, may result in "some disruption" and "technological glitches" initially as traders and the smallest of businesses will have to file returns online, he added.
GST, which was originally planned to be implemented from April 1 but was deferre

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enges," he said. "The reform step is for betterment. All reforms initially are seen as disruptive, and in the long run are seen as result yielding reform."
Jaitley said the process of registration of existing central excise, service tax and state VAT payers in the new system was "going on well".
"It is not a very complicated process," he said adding GST will check tax evasion and in the long run lead to rise in number of the assessees.
As many as 65 lakh assesses have already registered and more are expected to sign up. "65 lakh who have registered they did not face problem, the five who have faced problems are on Twitter," he quipped.
Ruling out deferring the rollout because of a small numbe

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ht of August 14-15, 1947, Parliament's historic Central Hall will host an hour-long function on the intervening night of June 30-July 1 to mark the rollout of GST
Jaitley said the GST Council has arrived at tax rates on most of the commodities on the basis on "equivalence" so that incidence of tax remains at the current level.
"The tax rates that has been fixed, that will apparently lower our tax revenues. But we are hoping that even after reducing rates the revenues won't come down because evasion would be checked in an efficient system," he said.
Asked about GST's impact on inflation, he said when tax rates come down it also has an impact on inflation, but it would also depend on monsoon and oil prices.

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GST: Credit card bill, insurance premium to get costlier

GST: Credit card bill, insurance premium to get costlier
GST
Dated:- 20-6-2017

New Delhi, Jun 20 (PTI) Credit card providers, banks and insurers have started alerting their customers to pay higher tax post implementation of Goods and Services Tax (GST) from July 1.
Customers currently pay 15 per cent service tax for such services. Starting from July 1, 2017 the GST will replace all indirect taxes like service tax and VAT.
Financial services and telecom have been put in the 18 per cent GST slab.
SBI Card has sent SMS to its customers alerting about the higher incidence of tax.
"Important: The Government of India proposes to implement the GST which is likely to be effective from July 1, 2017.
Consequently, the existing

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Commerce and Industry Minister Smt. Nirmala Sitharaman chairs Board of Trade Meeting to consult industry on Mid-term Review of the Foreign Trade Policy

Commerce and Industry Minister Smt. Nirmala Sitharaman chairs Board of Trade Meeting to consult industry on Mid-term Review of the Foreign Trade Policy
GST
Dated:- 20-6-2017

The 2nd reconstituted Board of Trade (BOT) Meeting chaired by Commerce and Industry Minister Smt. Nirmala Sitharaman was held today. Addressing the meeting she said the Government is fully seized with the concerns of the exporters and is engaged in intensive inter- departmental consultations with Department of Revenue and Ministry of Finance on their concerns related to GST. She directed the officers of the Department of Commerce, Department of Revenue and DGFT to consider all the issues appropriately for the Mid-Term Review of the Foreign Trade Policy (FT

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ere India has been able to smoothen out several trade barriers affecting the exports. She also mentioned that the Department of Commerce has been in continuous interaction with the Department of Revenue in sorting out several issues of exporters relating to GST, and on the suggestion of Commerce and Industry Minister, it is in the process of reviewing the FTP to align it with the GST roll out.
DGFT Shri A.K. Bhalla made a detailed presentation explaining the present trade scenario; existing export promotion schemes, efforts made by the Department of Commerce to address various issues of exporters with regard to GST and consultation with various stakeholders including exporters and industry association. He mentioned that while the Mid-Term

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Refund under GST

Refund under GST
Query (Issue) Started By: – Narendra Soni Dated:- 20-6-2017 Goods and Services Tax – GST
GST
Dear Experts,
Please guide in the below matter of refund :-
Our GST rate of Raw Material is 18% and for FG are as under:-
Product A
5%
Product B
18%
Product C
28%
1.Can we export our some products on pyt of IGST and other products under Bond, during a same tax period.
2.Can we file refund claim of IGST paid on export as well as unutilised ITC for export under bond as

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HSN code required

HSN code required
Query (Issue) Started By: – prakash kumar Dated:- 20-6-2017 Last Reply Date:- 21-6-2017 Goods and Services Tax – GST
Got 2 Replies
GST
Dear Professional colleagues,
As you know that, item wise detail is required in invoice (like HSN code, rate per piece, quantity of per item). My question is with Freight charged on the face of invoice. Whether one need to show HSN code of freight? If yes, then which HSN code?
Similarly how to show other reimbursement(Like- out of

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Govt all set to ring in GST at stroke of June 30 mid-night

Govt all set to ring in GST at stroke of June 30 mid-night
GST
Dated:- 20-6-2017

New Delhi, Jun 20 (PTI) Reminiscent of India's tryst with destiny at the mid-night of August 15, 1947, Parliament's historic Central Hall will host a function on the intervening night of June 30-July 1 to ring in the nation's biggest tax reform GST.
Announcing that the switchover to the Goods and Services Tax (GST) will kick in at the stroke of mid-night, Finance Minister Arun Jaitley said the hour-long function will mirror the contribution made by different political parties and states to the revolutionary new tax regime.
The circular-shaped Central Hall had previously hosted a function that marked 50 years of Independence.
Presid

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s of the Centre and states as the size of the formal economy will grow.
GST being a more efficient system will also result in better tax compliance, the finance minister stressed.
However, in the short term, "there will be some challenges" in switchover to GST, he pointed out without elaborating.
Asked about industry bodies talking about small and medium enterprises not being prepared for the switchover to GST, Jaitley said July 1 as the rollout date has been announced well in advance and so "nobody had any business not to be ready".
Besides, additional time has been given in the initial period for filing of the results, thus giving enough time to prepare for the transition, he said.
On the anti-profiteering clause

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TRANSACTION OF MERCHANT EXPORTERS/UTILIZATION OF MEIS SCRIPT

TRANSACTION OF MERCHANT EXPORTERS/UTILIZATION OF MEIS SCRIPT
Query (Issue) Started By: – NITIN DESAI Dated:- 20-6-2017 Last Reply Date:- 20-6-2017 Goods and Services Tax – GST
Got 1 Reply
GST
Dear sir,
we are two star merchant exporters buying goods in india and exporting the same in convertible currency outside india. we are providing ARE and for H for excise and sales tax exemption. Now with the implementation of GST I would like to know as to whether we may procure the material

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TN assembly adopts GST bill amid DMK walkout

TN assembly adopts GST bill amid DMK walkout
GST
Dated:- 20-6-2017

Chennai, Jun 19 (PTI) The Tamil Nadu Assembly on Monday adopted the GST bill amid a walkout by the opposition DMK, which wanted it to be referred to a select committee and taken up later for discussion.
Seeking to allay opposition fears of a "cascading of taxes" following GST's scheduled rollout on July 1, the government said it will aid GDP growth.
Finance Minister D Jayakumar, who intervened during the debate ahead of the passage of the Tamil Nadu Goods and Services Tax Bill, 2017, also assured the members that "any impact" of the rollout would be taken up with the Centre.
The meetings of GST Council, of which state finance minister

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moved on June 14 by Commercial Taxes Minister K C Veeramani.
Interestingly, DMK allies Congress and IUML stayed back when Stalin and his colleagues staged the walkout.
DMK member Anitha R Radhakrishnan, who spoke during the debate, said traders will be affected due to GST and alleged that the Centre had not held discussions with them on the matter.
The GST should be treated as a "pilot" exercise for the first year and the government should not act on "small discrepancies" by traders vis-a-vis returns, he suggested.
Congress member S Vijayadharani said although the GST was piloted by Congress-led UPA, the present BJP government at the Centre had introduced some "anti-people" amendments including cap on tax r

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Disqualification for misconduct of an authorised representative

Disqualification for misconduct of an authorised representative
Article 9
Bill
Appeals and Revision
GST – Appeals and Revision – Draft Rules – 19-4-2017
9. Disqualification for misconduct of an authorised representative
Where an authorised representative, other than those referred to in clause (b) or clause (c) of sub-section (2) of section 116 of the Act is found, upon an enquiry into the matter, guilty of misconduct in connection with any proceedings under the Act, the Commis

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treatment of accumlated cenvat

treatment of accumlated cenvat
Query (Issue) Started By: – arun aggarwal Dated:- 20-6-2017 Last Reply Date:- 21-10-2017 Goods and Services Tax – GST
Got 1 Reply
GST
Sir
I would like to repeat my question after all the clarifications and implementation of GST is final.
I would be left with the stocks on which I have taken cenvat as a registered excise manufacturer./dealer
Under GST the rates are much lower than the rates of excise/cenvat I have paid
The query is that how to take

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GST on advance

GST on advance
Query (Issue) Started By: – Murari Agrawal Dated:- 20-6-2017 Last Reply Date:- 21-6-2017 Goods and Services Tax – GST
Got 3 Replies
GST
Dear Experts – When we receive advance against supply, the amount received to be treated as net of tax or including tax. If the goods are supplied within same month, how to show tax in the invoice. If the goods are supplied in subsequent month, how to adjust the tax/ show in Invoice. Thanks.
Reply By MUKUND THAKKAR:
The Reply:
GST i

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Closing Stock lying with Branch

Closing Stock lying with Branch
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 20-6-2017 Last Reply Date:- 29-6-2017 Goods and Services Tax – GST
Got 2 Replies
GST
We have manufacturing of Pharma Machinery having branch within state.
As per GST Transitional Provisional Stock lying at the appointment of GST should not beyond one year from the appointment of GST Act.
In this regard, we have returned goods from our customer and same has been showing in form V register and

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Bengaluru Tax Commissioner Authorized to Register Non-Taxable Online Services for Non-Taxable Recipients Under New Rule.

Bengaluru Tax Commissioner Authorized to Register Non-Taxable Online Services for Non-Taxable Recipients Under New Rule.
Notifications
GST
Seeks to empower the Principal Commissioner of Central Tax, Bengaluru West to grant registration in case of online information and database access or retrieval services provided or agreed to be provided by a person located in non-taxable territory and received by a non-taxable online recipient. – Notification
TMI Updates – Highlights, quick notes

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INTERPRETATION OF CENTRAL GOODS AND SERVICES TAX (CGST) ACT (PART-10) (Meaning of Important Terms)

INTERPRETATION OF CENTRAL GOODS AND SERVICES TAX (CGST) ACT (PART-10) (Meaning of Important Terms)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 20-6-2017

This part of the series contains meanings of certain terms covered in Section 2 of the CGST Act, 2017. These are Proper Officer, Quarter, Recipient, Registered Person, Removal and Reverse Charge.
Proper Officer [Section 2(91)]
'Proper officer' in relation to any function to be performed under this Act, means the Commissioner or the officer of the central tax who is assigned that function by the Commissioner in the Board.
Proper officer means Commissioner or Officer of Central Tax who is assigned such function by Commissioner or Board. The term ' proper officer' could be understood as assessing officer of a taxable person.
Quarter [Section 2(92)]
'Quarter' shall mean a period comprising three consecutive calendar months, ending on the last day of March, June, September and December

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a contract of supply of goods and / or services, there are two parties, one is known as supplier of goods and / or services and other is called recipient of goods and / or services.
In the supply contract involving the payment of consideration, the person who is liable for payment of such consideration will be considered recipient. It is important to note that consideration could be paid by recipient or any third person. The determination will not depend on the fact who makes the payment but the person who is liable to make the payment will be considered recipient.
In the contract for supply of goods, where no consideration is payable, recipient would mean a person to whom goods have been delivered or possession or use of the goods is given or made available.
In respect of contract of supply of services, where no consideration is payable, recipient would mean the person to whom service has been rendered.
Registered Person [Section 2(94)]
'Registered person' means a person

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ered for defining removal of goods. First, the goods which require to be moved and the other which are not required to be moved. Thus dispatch of goods for delivery and collection of goods by recipient has been considered as removal. It is important to note that dispatch of goods not for delivery will not constitute removal.
Goods can be dispatched for delivery by the supplier or any other person acting on behalf of supplier. The term 'Removal' has been used for providing law in respect of issuance of tax invoice under section 31, Job work provisions under section 19 and also in transition provisions.
'Reverse Charge [Section 2(98)]
'Reverse charge' means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or subsection (4) of section 5 of the Integrated Goods and Services Tax Act.
Reverse charge means the

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GST rollout from July 1, 2017 – GST Council eases rules for return filing for July & August

GST rollout from July 1, 2017 – GST Council eases rules for return filing for July & August
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 20-6-2017

Dear Professional Colleague,
GST rollout from July 1, 2017 – GST Council eases rules for return filing for July & August
While sticking to the rollout date of July 1, 2017 for the first-of-its-kind mammoth indirect tax reform post independence in India, the all-powerful GST Council headed by the Hon'ble Finance Minister, Mr. Arun Jaitley concluded their meet for the 17th time on June 18, 2017. The GST Council on Sunday made the dreaded anti-profiteering clause more palatable specifying a sunset clause of two years even as it relaxed the deadline for filing returns under the GST till September.
With the conclusion of the 17thGST Council meet on June 18, 2017, the gist of the key takeaways from the meeting of the GST Council are as under:
* July 1, 2017 announced as the rollout date for GST
India's tryst with its

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month of July, a summary return will need to be filed by August 20, after paying appropriate taxes; for August it will need to be filed by September 20.
GSTR-1 with invoice level details for the month of July will need to be filed by September 5. For the month of August, the deadline will be September 20. GSTR-2 and GSTR-3 for these two months will be filed thereafter.
“The simplified rules for filing returns require a taxpayer to file only a simple, self-certified return -by August 20 for July and September 20 for August. This would summarise inward and outward supplies rather than specify invoice-wise detailed returns as per GST rules. However, assesses must file the return with invoice details in September for both months. These will be matched with the simpler returns filed earlier, and any difference in tax amount will be paid by the tax assessee ,” Shri Adhia said.
* Approval to Draft Rules for relating to advance ruling, appeals and revision, assessment and anti-profiteerin

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sed because of divergent opinions among states. With the GST Council divided on the E-Way Bill Rules, the manner in which consignments moving across states will be tracked, Shri. Jaitley said the transient rule would prevail pending a final decision.
* New Registrations from June 25:
On the registration of businesses, Shri Jaitley said that 65.6 lakh, or 81.1%, of the existing 80.91 lakh excise, service tax and VAT assessees, have migrated to the GST Network. Registration, which closed on June 15, will reopen on June 25, and the process has been going on “satisfactorily”, he said. “Businesses should not rush for migration. The provisional ID number will be the same for GSTIN (GST identification number). New businesses too need not rush. They will have 30 days for GSTIN.”
* Relaxation in tax rate for hotels:
The GST Council has decided to provide relief to hotels by raising the threshold tariff for the 28% tax rate to ₹ 7,500 from ₹ 5,000 proposed earlier. “After a lot

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hold for the composition scheme was raised to ₹ 75 lakh from the earlier decided level of ₹ 50 lakh for other states, and the decision on special category states had been kept pending.
* Composition Scheme -Negative List:
The GST Council has also recommended that manufacturers of the following goods shall not be eligible for the Composition Scheme:
* Ice cream and other edible ice, whether or not containing cocoa [2105 00 00]
* Pan masala [2106 90 20]
* Tobacco and manufactured tobacco substitutes [24]
* GST Rate on certain goods:
The GST Council also recommended that the GST rate on dried singhada and makhanawill be 5%.
* GST Rate on vessels:
The council has set a 5% integrated GST on shipping vessels with input tax credit.
Our Comments:
The GST Council will meet again on June 30 to take stock and decide before the implementation of GST.
With clear announcement of July 1, 2017 as the appointed day, it is time now for all of us to gear up for timely rollou

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Compensation whether furtherence of business for input tax credit

Compensation whether furtherence of business for input tax credit
Query (Issue) Started By: – Rakesh Chitkara Dated:- 20-6-2017 Last Reply Date:- 4-7-2017 Goods and Services Tax – GST
Got 1 Reply
GST
FACTS :A developer pays compensation to its customers to compensate for delay and default in handing over of the possession of property within the stipulated time.Compensation will be formula based (more like an interest) calculated based on amounts paid and period of delay.
QUERY ::Whether GST will be applicable on this compensation.
Whether such tax will be paid under RCM because the customer is an unregistered person ?
If yes, then whether developer can get the ITC of the same ?
First Opinion
1. This is an expense item.
2.

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e.
Crux : Whether compensation for default can be treated as an activity “used or intended to be used for the purpose of furtherance of business or commerce” for ITC purposes ? Is it expansive and enlarges the scope or is it an expression of restricting the scope ?
Also relevant case laws please.
Reply By Mehak Malhotra:
The Reply:
Dear Rakesh Chitkara,
1) Whether GST will be applicable on this compensation ?
GST will be applicble on this compensation.
Reason :
a) This is not a supply of goods.
b) It will get covered under definition of service. To qualify this definition, there have to be 2 important things. First, there has to be an ACTIVITY and second there should be a CONSIDERATION for that activity. In our case, activity is th

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ys a car for personal use and after a year sells it to a car dealer, the transaction will not be supply, because supply is not made by the individual in the course or furtherance of business. Further, no input tax credit was admissible on such car at the time of its acquisition as it was meant for non-business use.
Since, this service was taken by the developer not for the personal purpose but for the business, its input tax credit would be definitely allowed. If the developer has not taken the extension, he could not have completed the construction and could not have served the customer. So, in order to complete the transaction he took the service and paid compensation. Therefore, this is very well qualify the phrase “used or intended to

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Is job work continous suppy of services

Is job work continous suppy of services
Query (Issue) Started By: – Vineet Virmani Dated:- 20-6-2017 Last Reply Date:- 23-10-2017 Goods and Services Tax – GST
Got 2 Replies
GST
Can Job Work be taken as continous supply of services for the purpose of issuing invoices in case of supply of services. Particularly for those contracts which are regular in nature.
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
Job work may not be treated as continuous supply.
Reply By KASTURI SETHI:
The Re

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